How Does Payroll Work for On-Call Employees?

On-call employees are required by their employers to be available for work even during the employees’ time off.

Whether you must provide on-call pay for these employees depends on a few factors. But if you’re not paying for these hours, you may be violating the Fair Labor Standards Act rules for hours worked and overtime. And that’s a recipe for hefty fines.

The first thing to know is that FLSA regulations for on-call pay apply only to nonexempt employees. For them, the on-call rate of pay is generally the same as their regular rate of pay. They receive their regular pay unless they work or wait to work more than 40 hours a week. When that happens, the FLSA states that on-call pay should be paid at an overtime rate.

But how do you know whether these on-call employees have been working or waiting to work? Calculating on-call pay can be complicated, especially when you need to pay overtime too.

Calculating on-call pay

The Department of Labor offers general guidelines for determining on-call pay. The first question is whether the employee is restricted. Is the worker free to go where they’d like while on call? Or does the on-call employee need to be either at your workplace or within a certain proximity of it? If they need to be on site or within a range, the employees are considered restricted and the on-call hours are considered hours worked.

Let’s consider a couple of examples. A person who is required to stay at a hospital while on call may be able to take a nap or watch TV but cannot leave the campus. That’s a restricted employee. An employee who does not have to be at the workplace but who cannot engage in some personal activities might also be considered restricted.

However, if a worker is able to be at home or out, able to notify their employer where they can be reached in either case, and able to take care of personal matters during their time off, even if they are restricted geographically, on-call pay likely doesn’t apply. The employer hasn’t restricted the employee’s physical movement or use of time.

Calculating hourly pay for on-call employees means multiplying the applicable pay rate by the number of hours spent working or on call. If employees work more than 40 hours per week, they are eligible for overtime pay, whether actively working or on call. Travel time might also be eligible for compensation.

On-call employees

First responders and health care professionals often need to be on call to quickly attend to urgent situations or provide medical care. Additional positions that include on-call time might include:

  • Customer service representatives.
  • Information technology workers.
  • Buildings and grounds maintenance and repair workers.
  • Veterinarians.
  • Journalists.
  • Aviators.

When workers are waiting for work and their employer limits their freedom, preventing them from using the time for personal matters, that’s on-call work that gets on-call pay.

Be sure your employees get paid accurately. Be sure you’re in compliance and paying your employees what they’re owed. Be sure to include your business’s on-call policy in your employee handbook. Additionally, be sure you understand your state’s laws. States may have on-call laws that differ from the FLSA. (Union rules may also be different.) You should familiarize yourself with these regulations when determining whether an employee’s time spent waiting for an assignment is considered work time.

Facebook
Twitter
LinkedIn

Paysmart Online Quote

To get started, please take a moment to answer a few questions to help us best identify your needs. Thank you for your time!

Emily Gooding

Payroll Specialist

Emily is graduating in May with a BA in Business Administration from Lander University. She has gained valuable experience as a payroll intern for BMW. We are so excited to have her on the team and  to see her excel in her role as a Payroll Specialist.

Madison Capps​

Payroll Specialist

Madison received a BS in Psychology from Southern Illinois University in 2019. Since then, she has been working as a supervisor at Starbucks and earning her second degree, a BA in Administration and Accounting, from USC Aiken in the fall. She will be joining us as a Payroll Specialist and a valuable addition to our Paysmart team.

Kristen Wilby

Payroll Specialist

Before moving to South Carolina with her husband, Kristen worked as a Sales & Marketing Specialist for Premium King in Feasterville, PA, where she gained valuable experience in strengthening the brand and generating new business. Kristen also brings to our team several years of professional experience as an Executive Assistant and as an Office Manager, where she was first introduced to payroll. Kristen’s knowledge and her innate ability to establish genuine relationships contribute greatly to the team as we continue to grow and serve our clients.

Meg Whitaker

Payroll Specialist

Meg brings nearly twenty years of professional experience to the team. Most recently, she worked as a Payroll & Benefits Specialist in Centennial, Colorado. She and her husband recently moved back to the Carolinas for his job, and we were fortunate to find her! Before Colorado, Meg worked at CPI Security Systems in Charlotte, NC, for twelve years as a Billing Coordinator and Senior Administrative Assistant. She also gained three years of experience as an HR Assistant for a law firm in Fayetteville, NC. Her expertise significantly adds to our team and benefits our clients as we continue to grow!

Rachel McClaran, EA

Partner

Rachel plays a crucial role in developing Paysmart’s core processes and procedures, as well as overall strategy within the company. Rachel graduated from Bob Jones University and is an active member of the Junior League of Greenville and the South Carolina Association of CPAs. Her desire to serve her community has led her to become involved with several nonprofit organizations and to serve as the past Vice President of Finance for the Junior League of Greenville. Outside of the office,Rachel enjoys spending time on the water and traveling with her husband and their two children.

Hina Rogers

Payroll Specialist

Hina joined the Paysmart team in August 2022. She grew up in Portland, Oregon, before moving to Greenville, SC. She earned both a bachelor’s and a master’s degree in education. After college, she represented her alma mater as an enrollment counselor in the Southeast and Western states. She enjoys traveling, road trips, cooking, and quality time with her family. Hina looks forward to serving your company’s needs! 

Sharon Quantrille

Payroll Specialist

Sharon has spent several years in the accounting industry and has completed courses to hone her skills as a Payroll Specialist. Her background as an educator, professional musician, and Human Resources Generalist has contributed to her communication skills, commitment to professionalism, and organizational skills that make her a tremendous benefit to her Paysmart clients and colleagues. A graduate of Bob Jones University with a B.S. degree in Music Education, a Master of Music degree in Piano Performance and a Human Resources Generalist Certificate, Sharon spends her free time gardening, hiking, playing the piano, and spending time with her four adult children.

Haleigh Bates

Payroll Specialist

Haleigh joined our team in May of 2022 as a payroll specialist. Haleigh has over eight years of experience helping personal and small business clients with their financial needs. She received her Bachelor’s Degree from Georgia Southern University. She enjoys spending time with her husband and their three children, Caden, Addie, and Mason.  She likes to go hiking, spend time at the beach, and volunteer at her church in the children’s ministry. 

Courtney Rossello

Payroll Tax Manager

Courtney joined the team at Paysmart Payroll Services in September 2020.  She was raised in Simpsonville, SC, and graduated from Clemson University in 2009 with a bachelor’s degree in political science and a concentration in public administration.  Courtney began her payroll career in 2011 and currently works in the payroll tax department at Paysmart.  She strives to make every client feel comfortable knowing their payroll taxes and tax returns are handled accurately and efficiently.  Courtney is also a volunteer Treasurer for a local middle school in Greenville County.  In her spare time, she enjoys volunteering with special needs children, road trips, and spending time with her two daughters. 

Emily Hargrave

Senior Payroll Specialist

Emily received her bachelor’s degree in music from West Coast Baptist College. Since her college days, Emily has gained nearly 18 years of experience in office operations and project management. Emily joined Paysmart in 2017 and enjoys using her skills to support clients and the Paysmart team.

 At heart, Emily is a small-town country girl from the Midwest but is happy now to call the Upstate home, where she doesn’t have to endure harsh winters. Emily’s favorite ways to spend her free time are reading a good book, challenging herself with puzzles, and doing her best not to kill the plants in her garden.

Julie Shull

Client Success Specialist

Julie is the Client Success Specialist for Paysmart Payroll.  She joined the team as a Payroll Specialist in March of 2020. She received her Bachelor of Science degree from NC State University and earned an MBA from Gardner-Webb University while playing on the GWU women’s tennis team. After starting her career with Wilson Sporting Goods as a Financial Analyst, she took a few years off to raise twin boys until she began working for Greenville County Schools in 2014.  Julie enjoys spending time with her family and outdoor activities.

Brad Detandt

Payroll Administrator

A graduate of Northland International University with a BA in Counseling, Brad Detandt leads the day-to-day operations of the Paysmart team. He is eager to grow the firm’s client portfolio. He brings a diverse employment background in retail, manufacturing, nonprofit ministries, and business development, with
a specialized focus on team development and process improvement. Brad’s professional – and personal – mission is to “Be Great. Serve!” Brad enjoys spontaneous activities and weekend trips to state parks with his wife Miranda and his three children.

Stephen C. Stokes

Managing Partner

Stephen has more than 14 years’ experience working with individuals and businesses to meet their tax, accounting, and payroll needs. He has been the managing partner of Paysmart Payroll Services since January 2009. He is a licensed certified public accountant in South Carolina and Georgia. Stephen is also a member of the South Carolina Association of CPAs, the Georgia Society of CPAs, the American Institute of CPAs, and the Professional Association of Small Business Accountants. He has a bachelor’s degree from Bob Jones University and a master’s degree from Georgia State University. Stephen was born and raised near Atlanta, Georgia and moved to Greenville, South Carolina, several years ago. He enjoys spending time with his wife, Tiffani, and daughters, Madeline and Julianna. He is actively involved in his church and enjoys reading, sports, and other outdoor activities.